Advertisements
Advertisements
Question
Explain the following term/concept.
Dematerialisation
Advertisements
Solution
The process of conversion of physical certificates into electronic mode is called dematerialisation. The client has to surrender the physical shares certificates along with the Demat Request Form (DRF) to the DP. The DP forwards these to the depository who in turn forwards it to the issuer. After confirmation from issuer, the depository will credit the securities in the Demat A/c with DP.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ is the institute which facilitates electronic holding of securities.
Write a word or a term or a phrase which can substitute the following statement.
The organisation which holds the securities in electronic mode.
Write a word or a term or a phrase which can substitute the following statement.
The Agent of the Depository.
State whether the following statement is true or false.
Physical mode of holding securities is risky.
Find the odd one.
Find the odd one.
Select the Suitable word for the following.
Dematerialization ____________.
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) First depository in India | 1) ____________ |
| b) ____________ | 2) Rematerialisation |
| c) Fungibility | 3) ____________ |
| d) ____________ | 4) ISIN |
(12 digit code, NSDL, Electronic to physical, No distinctive number)
Correct the underlined word and rewrite the following sentence.
India has a single Depository system.
Explain four advantages of Depository system to the Company.
Justify the following statement.
The electronic holding of securities is safer than physical holding.
Justify the following statement.
Depository provides easy and quicker transfer of shares.
Justify the following statement.
The depository system results in reduced time, cost, and efforts.
Justify the following statement.
Depository system is very similar to the banking system.
India has a ______ depository system.
In Depository System, securities are held in ______ form.
Explain any four advantages of depository system to the company.
Explain the following term/concept:
Depository system
